Archive for February, 2009

Archived Version of Hitt Presentation on Strategic Management

| Peter Klein |

Here’s an archived version of Mike Hitt’s presentation, “New Theoretical Developments in Strategic Management,” that Mike Sykuta described before. You can also download the slides.

I watched the presentation yesterday and strongly recommend it, particularly the first part, as a good introduction to the resource-based view of the firm and an overview of some of Mike’s recent work on the institutional environment. It was nice of the AEM folks to set this up.

28 February 2009 at 9:59 am 4 comments

Funding Higher Education

| Dick Langlois |

Inspired by Peter’s post about salaries at private universities, I thought I would write a bit about public universities, notably my own. It was big news in Connecticut this week when Jim Calhoun, our head basketball coach, got nasty with a self-styled activist who attacked him at a post-game press conference. The activist, who had gotten in on a photographer’s press pass, wanted to know how Calhoun could justify his $1.6 million salary at a time of massive state deficits. Calhoun pointed out that, essentially because of him, the basketball program is a big profit maker for the University: it apparently brings in on the order of $12 million and costs about $6 million. The controversy arose because of the less-than-genteel way in which Calhoun made his case, prompting Governor Jodi Rell to issue a rebuke.

It turns out that Calhoun is not only the highest-paid University employee, he is the highest-paid State employee. (See here for a roster of the top state salaries.) The next two on the list are football coach Randy Edsall ($1.38 million) and women’s basketball coach Geno Auriemma ($1.31 million). The next three are physicians at the UConn Health Center — in the same specialties noted in the Chronicle article Peter cites: reproductive medicine, dermatology, and neurosurgery. (Basketball may not be brain surgery, but Calhoun won his 800th career game on Wednesday, and Auriemma’s team is a juggernaut likely headed for another undefeated season and a national championship.) UConn president Mike Hogan is seventh on the list. (There is an old story about the university president who was asked how he felt about making less money than the football coach: “he’s had a better year than I have,” was the answer.) (more…)

27 February 2009 at 2:04 pm 4 comments

Skidelsky on Keynes and Hayek

| Peter Klein |

Keynes biographer Robert Skidelsky delivered the Manhattan Institute’s 2006 Hayek Lecture on Keynes and Hayek. The lecture will be broadcast this Sunday, 1 March 2009, 3:00 EST, on C-Span 2’s Book TV series. It will presumably appear later on C-Span’s YouTube channel. (Thanks to Warren for the pointer.)

27 February 2009 at 9:45 am 1 comment

Nifty Little Nuggets for Improving Your Impact

| Nicolai Foss |

OK — since we are apparently doing the ligther posts currently (cf. Lasse’s recent post, the Mahoney and Pitelis list, etc.), here’s some potentially useful (?), hands-on advice on how to improve your academic impact.

Academic impact is obviously a multi-dimensional construct. While often measured simply in terms of publications in high-ranking journals, many universities now increasingly look at citation counts (i.e., SSCI numbers). This makes considerable sense. While an uncited paper in, for example, the Academy of Management Journal (and such exist) may have some social value (after all, it does certify the author as a competent researcher), there is no social value in terms of broader knowledge dissemination (and the results thereof). While the US seems to have the lead (in social science) when it comes to letting citation counts matter, the European scene is rapidly changing towards an increasing emphasis on citation figures. After all, these figures can be easily gathered, compared, etc. by research and university bureaucrats, looking for new areas where they can meddle in a low-cost manner.

Here are some simple ideas that may help to increase your citation numbers: (more…)

26 February 2009 at 5:02 am 12 comments

21 Economic Models Explained

| Lasse Lien |

In celebration of Mahoney and Pitelis’s impressive achievement in strategic management, here is a related classic on economic systems (HT: K. Isrenn):

21 Economic Models Explained

You have 2 cows.
You give one to your neighbour.

You have 2 cows.
The State takes both and gives you some milk.

You have 2 cows.
The State takes both and sells you some milk.

You have 2 cows.
The State takes both and shoots you.

You have 2 cows.
The State takes both, shoots one, milks the other, and then throws the milk away.

You have two cows.
You sell one and buy a bull.
Your herd multiplies, and the economy grows.
You sell them and retire on the income.

You have two giraffes.
The government requires you to take harmonica lessons.

You have two cows.
You sell one, and force the other to produce the milk of four cows.
Later, you hire a consultant to analyze why the cow has dropped dead. (more…)

25 February 2009 at 3:04 pm 46 comments

Case Studies and Causal Inference

| Nicolai Foss |

Can case studies — in the extreme: a study of a single case — play any systematic role in causal inference? If so, how? These are the questions posed in a paper by brilliant LSE mathematical sociologist, Peter Abell, forthcoming in the European Sociological Review. The paper is essentially a summary of Abell’s work over more than two decades with building stronger foundations for “qualitative” or “case study” research (a more comprehensive statement can be found in the “A Case for Cases” paper on Abell’s site).

Of course, in the standard statistical interpretation of causal inference, N should be large, and certainly not equal to 1. And most social scientists believe there is no explanation without generalization (an issue discussed at length by Popper, Dray, Collingwood, and others in the philosophy of history as well as by more recent social scientists such as Ragin and Goldthorpe — and James March (here)), so causal inference is predicated on generalization and comparative method. (more…)

25 February 2009 at 10:52 am 2 comments

Top Earners at Private US Colleges and Universities

| Peter Klein |

Some interesting factoids in this Chronicle of Higher Ed. story on compensation at 600 private US colleges and universities (via Gary Peters):

  • Of the 88 employees earning more than $1 million in 2006-07, only 11 were chief executives. Most were coaches or medical school faculty.
  • Median salary for full professors with MDs in the clinical sciences: $238,000
  • Median salary for full professors in all other disciplines: $122,159
  • Highest-paid employee: USC football coach Pete Carroll ($4.4 million)
  • Second highest-paid employee: Columbia University dermatologist David Silvers ($4.3-million)
  • Highest-paid economist: Columbia’s Henry Levin ($302,053)
  • Highest-paid film-studies professor: Wesleyan’s Jeanine Basinger ($250,854)

No information given on marginal revenue products. I imagine Pete Carroll’s is at least $4.4 million. Don’t know about the rest.

See also the graphic below (click to enlarge):


25 February 2009 at 7:48 am 3 comments

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Nicolai J. Foss and Peter G. Klein, Organizing Entrepreneurial Judgment: A New Approach to the Firm (Cambridge University Press, 2012).
Peter G. Klein and Micheal E. Sykuta, eds., The Elgar Companion to Transaction Cost Economics (Edward Elgar, 2010).
Peter G. Klein, The Capitalist and the Entrepreneur: Essays on Organizations and Markets (Mises Institute, 2010).
Richard N. Langlois, The Dynamics of Industrial Capitalism: Schumpeter, Chandler, and the New Economy (Routledge, 2007).
Nicolai J. Foss, Strategy, Economic Organization, and the Knowledge Economy: The Coordination of Firms and Resources (Oxford University Press, 2005).
Raghu Garud, Arun Kumaraswamy, and Richard N. Langlois, eds., Managing in the Modular Age: Architectures, Networks and Organizations (Blackwell, 2003).
Nicolai J. Foss and Peter G. Klein, eds., Entrepreneurship and the Firm: Austrian Perspectives on Economic Organization (Elgar, 2002).
Nicolai J. Foss and Volker Mahnke, eds., Competence, Governance, and Entrepreneurship: Advances in Economic Strategy Research (Oxford, 2000).
Nicolai J. Foss and Paul L. Robertson, eds., Resources, Technology, and Strategy: Explorations in the Resource-based Perspective (Routledge, 2000).